In its routine monthly operation, Ripple, a San Francisco-based blockchain payments company, released 1 billion XRP tokens from escrow in early October. The release occurred over three separate transactions, with the total value of the unlocked tokens amounting to $621.78 million.
Breakdown of Escrow Transactions
According to Whale Alert, the first transaction occurred at 02:53 UTC, unlocking 500 million XRP valued at approximately $310.64 million. A second transaction followed at 02:59 UTC, releasing 400 million XRP worth $248.88 million.
Finally, at 03:00 UTC, the last transaction in this series unlocked 100 million XRP, amounting to around $62.24 million. These three releases together fulfilled Ripple’s typical monthly release of 1 billion XRP tokens. The transactions were executed by the blockchain account OffEscrowerOfDai, an address commonly associated with Ripple’s monthly escrow releases.
Re-Locking Process: 800 Million XRP Returned to Escrow
Following its standard procedure of retaining 20% of the monthly token release, Ripple has re-locked 800 million XRP tokens into escrow. In past months, Ripple has consistently followed this pattern, re-locking 80% of the unlocked tokens on the first day of each month.
During last month’s escrow release in September, Ripple unlocked 1 billion XRP as scheduled, and shortly after, 800 million XRP were returned to escrow. The remaining 200 million XRP was likely used to support Ripple’s operational or business initiatives.
There has been speculation within the cryptocurrency community regarding how Ripple uses the retained 200 million XRP. Last month, some community members linked Ripple’s business activities to the U.S. Securities and Exchange Commission (SEC) case settlement.
The company was required to pay $125 million to the SEC following the outcome of its legal battle concerning violations of federal securities regulations. This prompted theories that Ripple may have sold part of the retained XRP to cover this settlement cost, although no official statement confirmed this.
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XRP Price Dips 2% in 24 Hours
While the XRP escrow release is a routine event, the token has seen a significant drop in value over the last 24 hours. At the time of writing, trading at $0.60, the token has experienced a 4% decline over a day. Despite the recent price drop, the digital asset remained 2% higher over the past seven days and has gained 8% in the past month.
It is unlikely that the release of the 1 billion XRP has caused an immediate decline in the token’s price. The broader cryptocurrency market has also faced corrections over the same period, impacting several major digital assets, including Bitcoin (BTC) and Ethereum (ETH).
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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